NYMO NYSE McClellan Oscillator Significant Top

The green circles show the market tops, double green circles show significant tops. The red circles show the market bottoms, double red circles show significant bottoms. Note the July top that printed well above 80, this caused the initial spankdown but the waterfall crash did not occur until the late July double green circle. As a rule of thumb, tops are called above 20 and bottoms are called below negative 40. The higher the print the closer the markets come to topping and rolling over, the lower the print the closer the markets come to bottoming and bouncing.

NYMO is now at the same levels, even higher, than the July top. This tool says if you missed the recent recovery rally, tough beans, do not chase it. This chart says that the markets are about to sell off. A similar fractal may occur as compared to July where the markets drop now, then the markets will recover with the NYMO coming back up again but printing a lower low, then the markets will drop much faster and lower. The recent rally has lots of momo so it should not turn on a dime, it is much more likely for the indexes to pull back down, then come back up for an M Top, like July, then roll over. This 91 plus number is significant. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.